Zee Entertainment Enterprises Ltd (ZEEL) has completed the allotment of 20,94,47,805 fully convertible warrants to promotor-group entity Sunbright Mauritius Investments Ltd, under its preferential fund-raising plan.
According to reports, the warrants were issued on August 21 at ₹126 each, taking the total issue size to nearly ₹2,640 crore. The allotment came after ZEEL secured the necessary approvals from shareholders and stock exchanges, along with a favourable ruling from the Securities Appellate Tribunal (SAT).
Each warrant is convertible into one ZEEL equity share with a face value of ₹1 at ₹126 per share. Sunbright has paid 25% of the issue price upfront, or ₹31.50 per warrant, amounting to roughly ₹659.76 crore. The remaining 75%, equivalent to ₹94.50 per warrant, must be paid within 18 months of the allotment date.
The deadline for the balance payment is February 21, 2028. The warrants will be converted into equity shares once the required payment is made. Until then, ZEEL's paid-up share capital will remain unchanged. If all the warrants are converted, Sunbright's holding in ZEEL will rise to around 17.90% on a fully diluted basis.
The issue received a key regulatory boost last week after SAT permitted ZEEL to proceed with the warrant issue to its promoter group. The tribunal also allowed the company to use its mutual fund investments to fund operational expenses.
